Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
On November 1,20x1 Zamfir Company,a U.S.corporation,purchased minerals from a Russian company for 2,000,000 rubles,payable in 3 months. The relevant exchange rates between the U.S.and Russian currencies are given: The company's incremental borrowing rate provides a discount rate of 0.975 for three months.
-Assume that on November 1,20x1 Zamfir Company enters a forward contract to buy 2,000,000 rubles on February 1,20x2. How should Zamfir report the forward contract on December 31,20x1?

A) $8,000 asset
B) $7,800 asset
C) $22,000 asset
D) $7,800 liability